The Government has fired the starting gun on its long-promised review of the Zero Emission Vehicle (ZEV) Mandate, asking car makers, charge point operators, dealers and drivers how the UK should reach the 2030 phase-out of new petrol and diesel cars.
The consultation, launched today jointly with the devolved governments, will consider whether the annual EV sales targets imposed on manufacturers remain appropriate on the road to 100 per cent zero emission new car and van sales by 2035. It runs until 23 October.
It arrives with the EV market in rude health. July was the strongest month for new car sales since 2019, EV registrations were up 45 per cent on the same month last year, and more than one in four new cars sold is now electric. There are also more than two million EVs registered on UK roads.
The Electric Car Grant, which takes up to £3,750 off the price of a new EV, has helped more than 160,000 drivers make the switch since launching last July. The Government says drivers who charge at home can save around £1,400 a year on running costs.
Ministers insist the destination is not in question. The review, which delivers on a long-standing commitment to revisit the Mandate by 2027, will instead examine the pathway in the face of what the Government calls challenging global conditions, including supply chain disruption and tariff uncertainty. Manufacturers are currently on track to meet their 2025 targets, helped by the scheme’s built-in flexibilities.
Transport Secretary Heidi Alexander said: “The UK EV market is strong – sales are up, British manufacturers and charge point operators are investing billions, alongside our backing of £7.5bn, including our Electric Car Grant that has helped over 160,000 people make the switch.
“It’s right we keep targets under review to ensure they’re practical and back British industry. The end goal hasn’t changed – but we need to take business with us on the journey, and that’s exactly what we’re doing today, by making sure industry has the chance to shape how we get there.”
That £7.5 billion package includes £4 billion for DRIVE35 projects and £3.5 billion covering van, truck and car grants, the Electric Car Grant and charging infrastructure. A further £600 million is being invested in the public charging network, which currently stands at 120,000 devices, although the pace of charger installation has slowed this year amid uncertainty over the Mandate’s future.
‘The sooner, the better’
The SMMT, which has previously demanded an urgent reality check on the targets, welcomed the announcement. Chief executive Mike Hawes said: “With the ZEV Mandate conceived under vastly different conditions, this welcome review is a timely opportunity to adjust the transition so it works for all. That means a commercially sustainable transition which supports UK competitiveness, investment and jobs whilst delivering greater choice and affordability for motorists – the sooner, the better.”
Not everyone is cheering, though. Gurjeet Grewal, CEO of Octopus Electric Vehicles, warned: “The ZEV mandate is working – giving manufacturers confidence to invest and drivers confidence to switch. Weakening it now would send exactly the wrong signal, just as EVs are becoming some of the best-value cars on the road.
“Carbon Brief estimates weaker targets could cost consumers £3bn a year in expensive petrol by 2030. We should be accelerating the transition, not creating another policy wobble that leaves drivers, businesses and the UK economy paying the price.”
